For over four years, Novartis has supported the preclinical development of molecules with potential to target a pathway implicated in inflammatory disorders, led by their partner, IFM Due. The pharmaceutical behemoth has now witnessed enough advancements to invest $90 million to purchase IFM Due, bolstering its progression in inflammation drug research.
The acquisition emerged as the final piece of a 2019 agreement between Novartis and IFM Due’s parent company, IFM Therapeutics. Based on the terms of this agreement, Novartis took the responsibility of fully funding IFM Due’s research and development activities, in return for an option to purchase all stocks of the subsidiary biotech.
IFM Due’s investigations focus primarily on cGAS, a protein that modulates the operations of STING, a pathway in the innate immune system that detects signals of cellular danger, leading to inflammatory responses. Inappropriate activation of the STING pathway could result in abnormal signaling causing inflammation. IFM Therapeutics suggests that cGAS-STING dysregulation could be the foundation of several inflammatory disorders. Details of specific diseases targeted by IFM Due’s research are yet to be disclosed. Novartis, however, now possesses complete rights to IFM Due’s portfolio of small molecules, which could potentially treat conditions driven by the STING pathway overactivity.
Novartis’s acquisition signifies IFM Therapeutics’ third exit event. This Boston-based company organizes its research in multiple subsidiary units, a strategic arrangement that allows each section to negotiate agreements with major pharmaceutical entities capable of financing and potentially buying the research. One notable example is Bristol Myers Squibb’s purchase in 2017 of IFM Therapeutics’ cancer immunotherapy research for an upfront payment of $300 million. In 2019, Novartis spent $310 million upfront to acquire IFM Tre, an IFM Therapeutics clinical-stage subsidiary leading a program for what is known today as MASH, a fatty liver disease variant.
Novartis could additionally disburse up to $745 million based on IFM Due’s achievements of research milestones, much like the prior two IFM Therapeutics transactions. As Richard Siegal, global head of immunology research at Novartis, stated, “The acquisition of IFM Due represents the culmination of a highly productive, four-year preclinical collaboration… We are excited to advance IFM Due’s STING program and leverage our deep expertise in inflammation science.”
Earlier this year, Ventus Therapeutics, a potential rival, made progress with its own research undertaking the cGAS-STING pathway. Ventus initiated a Phase 1 trial for VENT-03, an innovative molecule believed to be pioneering cGAS inhibitor for clinical development. Preliminary results from these trials are expected in the latter half of this year.
This article cites information initially reported on by MedCityNews.